First REIT: Announced strong set of 3Q11 results which was above estimates. Rev at $13.7m, +79.2% yoy and +3% qoq, while distributable income at $12.0m, +125.7% yoy and +21.2% qoq.
Strong results was mainly due to maiden contributions from grp’s three new properties, from Indonesia’s Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang acquired in Dec10, and South Korea’s Sarang Hospital acquired in Aug11, and other gain relating to the distribution of a portion of the total gain on divestment of the Adam Road property in 1Q11.
Going forward, grp remains confident of prospects and will continues to seek consistent growth across all its properties. With a visible pipeline from sponsor Lippo grp we it will be able to strengthen property portfolio in Indonesia, while on the SG front, REIT expects the demand for nursing homes and community hospitals to rise on the back of the govt’s push for improved tertiary care.
Annualized DPU stands at 6.79c, or a distribution yield of 8.7%, while P/B stands at 1x and gearing appears low at 16.4%, suggesting further headroom for REIT to gear up for yield accretive acquisitions.
No comments:
Post a Comment